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E-invoicing, SCF & E-procurement

Sberbank trials trade finance blockchain for Siberian oil

Thursday 12 September 2019 | 09:32 AM CET

Russia-based Sberbank has completed a pilot blockchain transaction with Singapore commodities company Trafigura.

The distributed ledger technology (DLT) was used for the supply of West Siberian oil. Acting as a forfaiter, Sberbank bought receivables that are owed to Trafigura from a Turkish buyer. The blockchain transaction was carried out using the Hyperledger Fabric platform, which recorded the date, duration of the transaction, scope of delivery, product characteristics and the financial terms of the original trade. Sberbank and Trafigura monitored the process with an online portal.

This is not the only application of blockchain from Sberbank. Last year it arranged for a RUB 750 million ($11.4 million) bond on Russia’s National Settlement Depository’s (NSD) blockchain. Sberbank said it is contemplating onboarding more partners for using its trade finance blockchain, with plans to use the DLT in other trade finance operations.

As for Singapore-based Trafigura, which is one of the largest trading houses operating in the US, it also previously dipped its toes into the blockchain space. Two years ago it partnered with French bank Natixis to run blockchain simulations for trade finance oil dealings in the US. Trafigura is also thought to be using the blockchain-based trade finance platform komgo.

More: Link
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